FX.co ★ Offshore Yuan on 3-Day Losing Streak

The offshore yuan dipped to nearly 7.23 against the dollar on Thursday, marking its third straight session of decline. This drop reflects ongoing uncertainty surrounding US-China trade negotiations. On Wednesday, US President Donald Trump stated that China had initiated the upcoming high-level discussions in Switzerland set for this week. He further emphasized that the extensive 145% tariffs on Chinese products would remain in place "for now." Recently, China indicated that the US had shown interest in these talks but made it clear that negotiations would not commence unless the US lifted its significant tariffs. Investor anticipation for a breakthrough is minimal as both parties remain steadfast in their principal demands, thereby fueling market uncertainty. In the realm of monetary policy, the People's Bank of China announced a 10 basis point reduction in key lending rates, alongside a 50 basis point cut in the reserve requirement ratio, aiming to stimulate economic growth amid trade war concerns.